Charles Foschini, Senior Managing Director & Co-Head of Florida Originations, Berkadia
In an interview with Invest:, Charles Foschini, senior managing director and co-head of Florida originations at Berkadia, discussed key trends in South Florida’s commercial real estate market, including capital placements, and the future of single-family rental and build-to-rent developments across the state.
What has kept Berkadia busy over the past couple of years?
Between 2021 and 2024, Berkadia completed over $13 billion in capital placements and financing for a diverse range of clients in the commercial real estate space including the most active developers and owners in the greater Miami metro area. We have closed large construction loans to support the development of new apartment communities and luxury waterfront condos; acquisition loans to enable investors to expand their portfolio of apartments or build-to-rent communities; as well as refinancing of existing loans that give clients access to funds so they can realize their long-term growth strategy. Berkadia has strong relationships with a variety of capital sources including banks, life companies, and debt funds, and unparalleled relationships with the multifamily GSEs. In 2023, Berkadia was the No. 1 Freddie Mac lender by volume for the third consecutive year, the No. 2 Fannie Mae lender, and the No. 1 HUD lender.
In Miami, Berkadia has and will continue to play a pivotal role in everything from the financing of luxury condos and hotels in places like Brickell and Miami Beach, to securing capital for owners and developers who are creating much-needed middle-market and affordable housing in pockets of the city that were once heavily blighted or underutilized.
What trends are emerging in South Florida’s commercial real estate market, and how is demand evolving across multifamily, office, and industrial spaces?
In office, South Florida has performed extremely well compared to major metros. Newer office properties are leasing at record-high rents, and we’ve attracted many new-to-market companies that previously weren’t in South Florida, which is a positive sign. The opening of 830 Brickell at the end of 2024 is a good example – approximately 90% of tenants at the 55-story Class A tower are new-to-market, including Citadel and Microsoft.
For multifamily, sustained population growth and employment growth due to corporate relocations has produced strong demand and leasing. Rents are not rising as quickly as they did during the pandemic, but they are still healthy. Low inventory of for-sale homes and higher interest rates are delaying homeownership and keeping many people in the renter pool for longer. New post-Champlain Towers condo laws are causing condo sales to plummet – and that may also generate more demand for apartments.
What are your thoughts on the single-family rental and build-to-rent trends, and how do you see those evolving in the next few years?
Single-family rental and build-to-rent assets will have a strong evolution in this real estate cycle nationally. However, in South Florida it will be limited due to our high land prices and the scarcity of land for that type of development. In Miami-Dade, Broward, and Palm Beach counties, most of the new home and townhome construction will be for-sale properties.
How are you leveraging technology to enhance client decision-making in the commercial real estate market?
As technology continues to improve and develop at an accelerated rate, it allows us to work faster and more efficiently. We can provide actionable insights gleaned from decades of proprietary data – powered by the most innovative technologies including AI – to maximize returns on our clients’ investments.
What do you see as the biggest challenges and opportunities for the firm in the next few years?
The opportunity lies in the fact that South Florida, and Miami in particular, is where the world wants to be. That growth is going to continue. Berkadia has been the top provider of capital to the real estate community for the last three years, and will continue to be a leading source for capital markets and investment sales advisory service to the local and global real estate community – even more so given our recent alliance with Knight Frank.
Our top priority is to continue staying in front of clients and serving them well. We also want to identify clients who are moving into South Florida and help them establish themselves in the region.
The challenge consists in ongoing global economic volatility, as well as the fact that Miami is land-constrained. Miami will need to be a leader in innovative transportation, affordable housing, and climate resiliency solutions to maintain its edge as a capital of real estate.
How do you anticipate the commercial real estate market evolving in South Florida over the next decade, and what sectors do you believe will drive future growth?
Over the next decade, I believe all commercial real estate sectors will grow in South Florida due to the ongoing migration of wealth, strong population growth and record-breaking tourism, and this will fuel demand in the office space, single-family and multifamily housing, hotels, retail and other sectors.
One limitation to this growth will be the fact that we’re very land constrained; that’s why we’re seeing more infill development in parts of Miami’s urban core as well as more rural areas in southern Miami-Dade County.
